To hire or to not hire more staff: 15 clues to help you decide

December 14, 2023, by Stephanie Messier |

Whether you’re considering your first hire or your tenth, making the right decision can seem just as daunting.

When’s the right time? What are the signs? We constantly hear these questions from our clients, and today we’re sharing what we tell them.

With this information, we hope you can make better hiring decisions that boost morale and productivity, lend to higher customer satisfaction, allow you to seize more growth opportunities, and take your business to the next level.

TL;DR: Key takeaways

• Key signs you may want to hire more staff include having enough money to do so, enough work to warrant more employees, and new potential growth opportunities not pursuable with your current team.

• You don’t have to jump to a new full-time hire. Assess the amount of work required and see if a freelancer or other less-committal, more cost-effective hire can help instead.

• When the heat is on and it’s clear you need more staff, don’t throw caution to the wind and hire the first person that applies. Similarly, to reduce downtime and improve the chances that your new hires will succeed, take the time to define your roles beforehand and properly onboard.

• More than to benefit day-to-day operations, building a qualified, capable team can help increase your valuation. If you plan on selling your business one day, this is something to keep in mind.

15 signs it’s time to hire more people

1. You're declining job opportunities

If new business is banging on the door but you’re having to turn it down because you’re already at capacity, more employees can help make sure you’re not leaving money and opportunities on the table.

2. You've identified new sources of potential revenue streams

Say a new revenue stream pops up—one that potentially paves the way for growth in your business—but your employees are too busy to add something else to their plates; hiring more people allows you to hop on opportunities like these.

3. Your clients or customers are expressing dissatisfaction

A bump in negative reviews or a drop in referral can be signs of dissatisfaction among your customers, which can stem from a team lacking enough resources or manpower to provide a satisfactory customer experience.

4. Your employees are complaining

In some cases, struggling employees may directly tell you that you need more people. Even if these aren’t their exact words, they may say something else that suggests a need for more hires. For example, if excuses for missing deadlines begin to rise, especially from employees who didn’t struggle with meeting them in the past.

5. The quality of your products and services is deteriorating

A sudden drop in product or service quality is a huge red flag. If defects or experience-breaking errors are on the rise, it could be a sign that, somewhere in your production process, help is needed.

6. You lack the time for daily financial management, bookkeeping, and administrative tasks

No matter how much business you have, there are some basic responsibilities that always need to be taken care of, such as making sure employees get paid on time. When these basic responsibilities start to get neglected, it’s time to look at hiring more people—and fast.

7. You need someone with a specific skill set

What do you do when you encounter a problem you’ve never encountered before, and there’s no one on your team who can solve it? If it’s an isolated problem, you might be able to consult someone or bring someone in to help on a temporary business. But if it’s a long-standing problem in the way of taking your business to the next level, hiring a more permanent specialist may make more sense.

8. You can't find any time for a break or a vacation

No one wants to work for an employer where breaks are either impossible or looked down upon. If either you or your team are struggling to find time for breaks or vacations, especially in combination with falling morale and productivity, hiring more people may be the steam release you and your team need.

9. Your company is experiencing a growth plateau

You’re doing everything you can with what you have but you just can’t seem to get to that next level, even though you know it’s where you should be. In cases like these, new hires can bring in the ideas, expertise, strategies, and productivity necessary to blow past even the most persistent plateaus.

10. Your clients have difficulty reaching you

For many companies in the beginning, there’s often enough time and resources to give clients a direct line for quick, personalised responses. As you grow, however, this becomes more difficult, but adding more members can allow you to maintain this direct line as you scale.

11. You can afford it

No shocker here, but one of the clearest signs it’s time to hire more people is when you have the money to do so. The more you invest effectively in your team, the more engaged and productive they'll become, and the more revenue you'll ultimately generate for your business.

12. You need more than one freelancer

Before jumping to hire someone permanently, ask yourself: Could a freelancer accomplish this same thing? If the answer is yes—perhaps it’s consistent, monthly work but not enough to warrant a full-time commitment—the lower price of a freelancer may be a better choice. If the answer is no—perhaps the work is long-standing and requires at least a 40-hour weekly commitment—then the stability and integration of a full-time employee may be more suitable.

13. There's sufficient work to keep a new hire occupied

Being able to afford more staff is one thing; having enough work for them is another. The last thing you want is to usher in a new hire only to realise you don’t have enough work to keep them busy. For example, if you're consistently finding team members don't have the capacity for new work (i.e. during stand-up), that may be a sign you could use more helping hands.

14. You're considering selling your company in the future

If you’re the owner of your business and plan on selling it in the future, hiring more staff can make for a smoother, more successful sale. The more infrastructure that exists within your business, the more confidence this instils in potential buyers; they can run with your existing team and succeed, regardless if you’re part of the picture. Not to mention, the more valuable team members you have, the more your business is worth.

15. Overtime hours are on the rise

An increase in submitted overtime hours is another potential sign of an imbalanced work-to-employee ratio. In hiring more staff, you may be able to open up capacity across your teams, alleviate stress, and potentially save money (excessive overtime adds up over time), all at once.

Common mistakes to avoid when growing your team

It’s also worth taking a second to outline some of the most common recruiting mistakes you can make when hiring more staff.

Hiring too quickly

When the heat is on, it can be tempting to throw caution to the wind and hire as quickly as possible. There’s a balance here, as speed is undoubtedly important when hiring, but so is proper evaluation; hiring an unqualified person because they’re the first person to apply can end up spreading the flame more than putting it out.

Not defining roles beforehand

In the early days of running a business, donning more than one hat is common; and there’s often an expectation for employees to do the same. But this doesn’t mean clear role definitions aren’t required. Clear role responsibilities and definitions of success help new hires spend their time effectively and not feel like they’re being pulled in a million different directions.

Skipping proper onboarding or training

In an ideal world, all new hires would hit the ground running, taking the initiative to figure out what problem they should be focusing on and executing. While this can happen, it’s more often the result of proper onboarding and training than being thrown into the fire. Proper onboarding also more effectively lays the groundwork for a more positive working relationship long term.

FAQs on hiring more employees

How should I approach hiring more staff if my business fluctuates throughout the year?

If seasonal fluctuations are consistently exceeding the limits of your team, hiring contractors or temporary staff may make more sense than full-time staff. This is often a more cost-effective way to meet fluctuating demands, as you’re only paying for the extra help when you need it.

How do I determine the right number of staff to hire?

Deciding on the right number of staff to hire depends on factors like your industry, the nature of your work, and your growth objectives. As best you can, use data to uncover the right number. This can be through workload analysis, considering your budget, projecting your future needs, and consulting others who have gone through similar periods of growth in your field.

What if I need to hire someone but have a limited budget?

If you're on a tight budget but still need to hire more staff, and your line of work allows for it, consider hiring freelancers, contractors, part-time employees, or interns. These options can help you address immediate needs without the long-term commitment and costs associated with full-time employees.

Ready to hire?

Hopefully, these signs help you understand if hiring more staff is the right call for your business.

When you are ready to hire, HR à la carte can help you save up to 75% of the typical costs associated with hiring

Learn how we accomplish this with our fractional recruitment services .